Biden’s election win offers hope aplenty for the cannabis industry. Cannabis stocks surged after the election. This caps off several wins from the weed side:
- Recent state ballot initiatives legalizing recreational cannabis use.
- Optimism that federal legalization is just around the corner.
- Booms to cannabis stock prices.
Valuations are rapidly going up for Aurora Cannabis, Canopy Growth Corporation, and Tilray — some more than double what they were pre-election. If this growth continues, the future is bright for investors. It could match the gains these companies had when they first went public.
For example, recent pre-market earnings reports from these companies paint a bright future:
- Aurora Cannabis: up 50%.
- Canopy Growth: up 10%.
- Tilray: up 25%.
Most cannabis companies call Canada home. In the U.S., with the Biden win, there is optimism that Congress will succumb to pressure to legalize cannabis federally. This would change the cannabis playground in a huge way. Once the U.S. legalizes it federally, Canada could have another market and consumer base.
Biden has made statements indicating he would work to reform cannabis legislation. In the grand scheme of things, federally legal cannabis is looking more and more likely, although what that will look like in the end isn’t clear.
The Biden win isn’t only a win for cannabis stocks; these events have made some critical industry-specific legislation more likely to happen. We’re talking about the SAFE Banking Act, the STATES Act, and the MORE Act.
The SAFE Banking Act would revolutionize the cannabis industry by allowing banks to work with cannabis companies. Likewise, the STATES Act would let states legalize cannabis without risking federal interference. And lastly, the MORE Act would take cannabis off the Controlled Substance Act.
Optimists expect Congress will take up these issues before the session ends. This activity indicates an industry that is quickly changing. Investors see a bright future.